Also, don't use them around quest-bound 'followers' (like the random quest-givers) because they'll go 'red dot' on you if they get caught in the AoE.

Yeah, I had the female DB initiate with me, and she stuck to me like chewing gum in the hair. Between those flaming scrolls and the proc from Dawnblade, she had enough pretty quickly and started attacking me, lol!
Also, returning to J'zargo with the report was one of the more amusing moments in the game. He's surprised to see you, though he tries to disguise it. Also, when you ask if the scrolls were supposed to explode, there's just the slightest hesitation on his part when he says, "no," as if to suggest that clearly the explosions weren't strong enough. Well, he did tell you he was competitive, didn't he?